Core Viewpoint - The closure of the joint venture factory in Nanjing by Volkswagen Group and SAIC Motor is a significant step in Volkswagen's transition towards electric and intelligent connected vehicles, marking a shift in strategy to focus resources on local electric vehicle platforms and regional electronic architecture development [2][5][11]. Group 1: Factory Closure and Strategic Shift - Volkswagen and SAIC Motor will gradually close their Nanjing joint venture factory, which has already halted production, with full closure expected in the second half of the year [2]. - The Nanjing factory, established in 2008, was a key expansion for Volkswagen in China, producing models like the Passat and Skoda [4]. - The closure is seen as a necessary move to eliminate low-efficiency production capacity, with Volkswagen's actual production in China expected to fall below 3 million units in 2024, down from a peak of nearly 5 million [6]. Group 2: Market Dynamics and Challenges - The Nanjing factory's closure is partly due to declining market share in the mid-range sedan segment, with competition from domestic electric vehicle brands like BYD and NIO [5]. - The factory's location in a congested area limited logistics and space, making it less viable for future production needs [5]. - Volkswagen's sales in China have faced challenges, with a 7.1% decline in total deliveries in the first half of the year, and a significant drop in electric vehicle deliveries [9]. Group 3: Future Plans and Investments - Volkswagen plans to invest approximately €170 billion from 2025 to 2029, focusing on new products, regional markets, and electric vehicle platforms [8]. - The company aims to launch over 20 new intelligent connected vehicle models in China by 2026, covering various powertrain types [12]. - Volkswagen's partnership with XPeng and the development of a unified battery cell standard are part of its strategy to enhance competitiveness in the Chinese market [11][12].

Fundraising Overview - The company has raised a total of RMB 7,302,945,207.46 through a non-public offering of 384,163,346 shares at a price of RMB 19.01 per share, after deducting issuance costs of RMB 72,090,121.84 [1] - The net proceeds from the fundraising are managed in a dedicated account, ensuring compliance with relevant regulations and guidelines [1] Fund Management and Oversight - The company has established a fundraising management system that outlines the storage, approval, usage, and supervision of the raised funds, adhering to principles of standardization, safety, efficiency, and transparency [1] - A tripartite supervision agreement has been signed with the underwriting institution and banks to clarify the rights and obligations of all parties involved [2] Project Implementation and Changes - The company has changed the use of raised funds from the "16GWh high-energy power lithium battery industrialization project" to the "20GWh Volkswagen standard cell project," with the implementation entity changing to a wholly-owned subsidiary [4] - As of June 30, 2025, the company has made adjustments to the fundraising projects, including the completion of the "30,000 tons high-nickel ternary cathode material project" and the transfer of surplus funds to general operating accounts [6][7] Fund Account Closure - The company has completed the closure of specific fundraising accounts and notified the underwriting institution and representatives accordingly [7][8] - The termination of related tripartite or quadripartite supervision agreements follows the closure of the fundraising accounts [8]